Buzz Bits: Dow and Nasdaq End Higher
Your daily Buzz & Banter highlights.
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Quickies from Kenicke! - Todd Harrison - 3:10 p.m.
- What comes after a superboom? Yes, Minyans, a superbust! (I intentially left this unlinked!).
- Fear? Donde, mi amigo? The VXO (-11% today, 18% this week, 37% since mid-March) is now sitting on the trendline and 200-day.
- Gotta love the Terps, who have been quick to remind me that Chesapeake Bay Blue Crabs warrant a spot in the most labor intensive food metal round.
- Sweet call Coops. That's why you're Coops! Minyans who wanna get his vibe every day--all day--are most welcome to do so.
- How awesome is it that Pepe and Lila Depew's daughter Lucinda has an April Fool's birthday?
- I'm being told that certain clearing houses are now sending approximations of fixed income securities rather than actual valuations. That's sorta disturbing, no?
- Jeezums, Minyanland is registering two kids per minute. Engine room, more financial literacy!
- The sharpest what occur when? Yeah, you know. I'm "open-minded" to a socialization led hyper-inflation but the benefit of the doubt resides with Boo below our aforementioned resistance (and the dollar would be lower in that scenario).
- The most interesting juncture in the history of finance. Period.
- Where's Zoë?
- If Coops' muse is right--and the tape jacks to an +500 posture--which would be spitting distance of resistance--I will, for the record, unleash Boo for a trade. So you know.
- As always, I hope this finds you well.
An Interesting Dislocation Occurring - Bennet Sedacca - 2:40 p.m.
The stock market is off to the races with financials leading the way.
Those that bought CDS at the peaks and shorted stocks into the hole are paying, and paying dearly.
The number of shorts in stocks like Fannie Mae (FNM) is simply amazing. But stocks like Google (GOOG) and Apple (AAPL) have short ratios in the 0.5 area. Yep, a half a day.
But what I'm not seeing is a corresponding move in the preferred and hybrid market. If this were for real as in more than a bear market rally, the debt would catch fire.
Just my take folks. When the debt catches a real bid, I will be convinced. Until then I'm simply trading and 'renting'. The secular trend, for those that actually care about it, isn't any better.
Lehman (LEH) simply confirmed for us that it needs cash.
Otherwise the company wouldn't have raised it. But those short stock, long CDS and long puts are getting smoked.
Position in LEH debt
Don't be April Fooled! - Lance Lewis - 1:55 p.m.
A couple of things worth noting about today's action. Gold punched through its March low this morning. However, the XAU never even took out its intraday march low. HUI and GDM are both back above their March lows after dipping below them intraday day as well. Silver has also recovered to back above its March low. Some gold shares, like Metallica Resources (MRB), are even up on the day already.
These are all positive divergences with gold, which suggest another inflection point is close. When we throw in the continued selloff in fixed income and the rally in equities, it all suggests that the system is beginning to reliquify, and that the inflection point at hand is not "goldilocks nirvana" but the re-acceleration of inflation. As I've always said, the Fed can inflate to keep the system functioning, but the cost is going to be a dramatically higher inflation rate. Along those same lines, note that crude oil is up on the day and back above $102. Some crash we're seeing in inflation, huh? Don't be April fooled. Keep your eye on the ball.
Position in MRB
Tech Notes - Sean Udall - 12:57 p.m.
The stock's caught an upgrade. I caught VMW yesterday as I felt that the stock had gotten down to a point where a long side shot (with defined downside) may be rewarded in the near to intermediate term. While on Tech Ticker, I discussed VMW and virtualization and was bearish on the name then. However, that was about $20 higher. I still think much of the virtualization promise will be realized, though I'm not sure VMW or any software player, is the best way to play it long term.
Two chip stocks have caught my eye in this realm – Mellanox (MLNX) and Voltaire (VOLT). Both are fairly new to the public market, small cap and speculative. However, they both deal in the Infiniband space which I feel could directly benefit from the push to virtualization.
Citrix Systems (CTXS)
While the company may have overpaid for XenSource, I think the stock may be presenting opportunity as well at current levels after a few recent downgrades and/or target trimmings by the analyst community.
The stock has broken out of a long term downtrend on both the daily and weekly charts. I'm a buyer on weakness as the IP portfolio of SNDK at this point is being massively undervalued.
Positions in VMW, INFN
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